Tanzanian Royalty Exploration Corporation - Chairman's Corner - Equitable Sharing of Resource Wealth Key to Success in Developing Countries

James E. Sinclair,
Chairman & CEO,
Tanzanian Royalty Exploration Corporation

	May 03, 2010 Equitable Sharing of Resource Wealth Key to Success in Developing Countries
	Dear Friends, You cannot aggravate your host by digging a hole in the ground and leaving. There is still a colonial mindset in place that needs to adjust to a world where the Internet provides instant information globally. I would prefer a one percent rise in royalties to an increase in tax rates with the application of forensic tax auditing as is pending in Australia. Wherever this occurs be prepared for industry associations to yell and scream rather than seeking what is good in a bill and working with the administration. Jim Sinclair Mine our resources? Then pay the taxman Australia to impose 40% tax on resource companies' profits by BLOOMBERG 05:55 AM May 03, 2010 CANBERRA - Australia will impose a 40-per-cent tax on the profits of resource companies like BHP Billiton and the Rio Tinto Group to pay for infrastructure, retirement and company levy changes, as part of the broadest overhaul of its tax system since World War II. The government, responding to Treasury Secretary Ken Henry's 10-year tax plan, said the resource tax would start in 2012 and raise A$12 billion ($15.2 billion) in its first two years. The move is to better tap the nation's mining boom fuelled by commodities demand from China and India, and comes as Prime Minister Kevin Rudd prepares for an election later this year. "This will use super profits on resources owned by all Australians," Mr Rudd told reporters, saying he was prepared for a backlash. "This will help convert Australia's strong economic position today into enduring prosperity." more...

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